When marginal revenue and price elasticity of demand

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1. Explain how and when marginal revenue and the price elasticity of demand are related.

2. (Chapters 1&2) explain how the market for corporate control mitigates the principal agent roblem experienced in public companies whose managers are not owners.

3. Does a horizontal merger increase a firm’s market power? Explain why or why not.

4. Explain the “failing firm” defense for mergers. Why are failing firms difficult to identify in practice?

5. Which type of mergers has the potential to increase market power: vertical, horizontal or conglomerate? Explain. Use a current merger to illustrate your point.

Reference no: EM131242537

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